Are we going to create a new and powerful global energy body?

I was not surprised at all when reading the news leaked from the recent Brisbane meeting of the G20 Summit that the world’s top political leaders were seeking to lay the foundations for a new global energy body.

It is a long overdue effort, but not an easy one to achieve, given the already crowded chessboard of international “governors” and institutions with competing and overlapping objectives.

A central part of the G20 plan – including commitments on the security of energy supply, transparency of pricing, limits on energy subsidies, emphasis on energy efficiency and precluding embargoes – would be an institution to sit above OPEC and the International Energy Agency (IEA). These talks have not been concluded yet and could drag on for a while, but the good news is that the process has finally started.

The game-changers in world energy dictate that the old order’s “business as usual” structures are not possible to sustain. The game, the players and the rules of the game have changed beyond recognition. Hence, there is recognition to adapt the existing global energy architecture to the whims of these changing circumstances so as to effectively respond to the aspirations and needs of the planet’s population and resources.

No doubt, energy is vital and remains the backbone and critical artery of the world economy more than ever. Its trading, impact on the competitiveness, productivity, pricing, investment, taxation and repercussions on the global climate change profoundly affect all of us. However, there is no “one global energy” as this precious commodity is divided into many industry and sub-industry commodity segments, including not only traditional fossil fuels such as oil, gas and coal, but also electricity...